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Former Member
Sep 17, 2007 at 07:57 PM

Accruals/Deferrals

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Hi All,

I am familiar with the accrual and deferrals in accounting but I am having a hard time mapping scenario in SAP. the t.code FBS1 (enter accrual) and F.81(reverse accrual) are just creating an entry and reversing it at end of month. But I dont get the big picture as how it overall affects the expense account and the deferral account.

Eg: if company pays prepaid rent (deferred rent - asset) 3 months in advance (jan feb mar), how does this map to the system? This is what I have so far (monthly rental $300):

Company receives invoice (jan 1):

-


Dr prepaid rent $300 (jan)

Dr prepaid rent $300 (feb)

Dr prepaid rent $300 (mar)

Cr vendor $900

(i am ignoring the vendor payment here to make it short)

End of Jan - Jan 31st:

-


Dr rent expense $300

Cr prepaid rent $300 (jan)

End of Feb - Feb 29:

-


Dr rent expense $300

Cr prepaid rent $300 (feb)

End of Mar - Mar 31:

-


Dr rent expense $300

Cr prepaid rent $300 (mar)

The end of month entries can be added as recurring but I don't see where I would setup accrual and reverse it at end of month in this case? Is there any online document with scenario on how accruals/deferrals work in SAP?

Thanks